Wave Accounting Review 2025 Pros and Cons for Small Businesses

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If you run a small business and want an affordable way to manage your books, a wave accounting review shows this platform can be a smart choice in 2025. Many small businesses like that Wave offers free accounting software with a clean interface and useful features. You can send an invoice, track expenses, and access your data from anywhere. However, Wave has some limits. The accounting software does not offer advanced tools, and support only comes by email. Check out the main pros and cons below:

This wave accounting review will help you see if Wave meets your needs and fits your budget.

Key Takeaways

• Wave Accounting offers free, easy-to-use bookkeeping tools ideal for freelancers and small businesses.
• You can send unlimited invoices, track expenses, and access your data from any device with no monthly fees.
• The platform lacks advanced features like inventory management, time tracking, and full payroll support in all states.
• Customer support is mainly email-based, with live chat available only for paid users.
• Wave works best for simple, service-based businesses that want to save money and avoid complex accounting.

Wave Accounting Review: Is It Right for You?

Pros and Cons Overview

When you look at a wave accounting review, you see that this small-business accounting software stands out for its free core features and easy-to-use design. You can handle invoicing, track expenses, and connect your bank accounts without paying a monthly fee. Many freelancers and small businesses find this appealing, especially if you want to keep costs low.

Here’s a quick look at the main advantages and disadvantages:

But you should also know about the drawbacks:

• No built-in payroll in most states (only 14 supported).
• No inventory management or time tracking.
• Limited customer support—email only unless you pay extra.
• Fewer integrations than other small-business accounting software.
• Not ideal for businesses with complex needs or plans to grow fast.
• Mobile app has fewer features than competitors.
• Extra fees for payroll and bookkeeping add-ons.
• Only available in the US and Canada.

Note: If you need advanced features like project accounting, inventory tracking, or multi-state payroll, you may want to look at other accounting software options.

Who Should Use Wave?

You might wonder if this free accounting software is right for your business. Wave accounting works best for certain types of users. Here are the groups that benefit most:

• Small business owners who want to save money and need basic bookkeeping.
• Startups that need simple tools for invoicing, expense tracking, and financial reporting.
• Freelancers and small businesses who manage multiple clients or projects and want easy invoicing.
• E-commerce sellers who use platforms like Shopify or PayPal and want to track sales and payments.
• Consultants who need to send invoices and track payments without extra complexity.

If you run a product-based business and need inventory management, or if you need advanced payroll and HR features, wave accounting may not fit your needs. The platform does not offer project accounting or time tracking, so businesses that bill by the hour or need detailed project reports may find it limiting. Also, if you want live customer support or plan to scale quickly, you might outgrow Wave.

Here’s a table to help you decide if Wave fits your needs:

Tip: If you want a simple, free solution for basic bookkeeping and invoicing, a wave bookkeeping review will show that Wave is a top choice. If you need more advanced features, you may want to compare other small-business accounting software before making a decision.

What Is Wave Accounting?

Platform Overview

If you want a simple way to manage your business finances, wave accounting overview gives you a clear picture. Wave started in 2010 in Toronto, Canada, when Kirk Simpson and James Lochrie wanted to help small business owners with easy, free tools. The company’s first product was a free online accounting software for businesses with fewer than ten employees. Since then, wave has grown to serve millions of users across the US and Canada. H&R Block acquired wave in 2019, but the platform still focuses on helping you reach your goals with confidence.

You get all the core features you need for bookkeeping. Wave lets you track income and expenses, send invoices, scan receipts, and run basic financial reports. You can connect your bank accounts and even add payroll or payment processing if you want more. The platform works well for freelancers, startups, and small businesses that want to keep things simple. You can also connect wave to PayPal, Etsy, and over 1,000 other apps using Zapier.

Here’s a quick look at what sets wave apart from traditional accounting software:

Cloud-Based Benefits

Wave gives you the freedom to work from anywhere. Because wave is cloud-based, you can log in from any device with internet access. You never have to worry about installing software or losing your data. Everything stays up to date, and you always see the latest numbers.

Cloud accounting software like wave brings you many benefits:

• Accessibility: Check your books anytime, anywhere. No need for backups or special computers.
• Automation: Wave imports your bank transactions, sends invoice reminders, and helps you reconcile accounts with less effort.
• Collaboration: You and your accountant can work together in real time, even if you’re in different places.
• Security: Wave uses strong encryption and PCI Level-1 certification to keep your financial data safe.
• Cost Savings: You avoid paying for hardware or expensive updates. Wave’s free plan covers most needs for small businesses.

Note: Wave is designed for business owners who want easy-to-use accounting software without a steep learning curve. You can focus on your business, not on learning complicated systems.

Wave Accounting Features List

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Invoicing and Payments

Wave gives you a strong invoicing software experience without charging you monthly fees. You can create unlimited invoices and send them to your clients. The platform lets you design customizable invoices with your logo, brand colors, and personal messages. This helps your business look professional every time you bill a customer. You can accept online payments right from your invoice, including credit card and ACH payments. Wave also sends automatic payment reminders, so you get paid faster. Your clients can view and pay invoices through a secure portal. The mobile app lets you manage invoices and capture receipts on the go. Here’s a quick comparison:

Expense Tracking

Wave makes income and expense tracking simple. You can connect your bank accounts to import transactions automatically. The platform uses OCR to scan receipts, so you can snap a photo and let Wave fill in the details. You can split transactions, add notes, and tag expenses for better organization. Many users say this feature reduces stress during tax season. You can track cash expenses manually or let Wave handle everything automatically. The mobile app keeps your records up to date wherever you are.

• Automatic bank transaction imports and categorization
• Receipt scanning with OCR for easy expense capture
• Transaction splitting and tagging for detailed records
• Real-time financial visibility on mobile and desktop
• Helps you separate business and personal finances

Bank Connections

You can connect your bank accounts in Wave Pro for automatic transaction imports. This feature saves you time and keeps your books accurate. If you connect the same account more than once, you can manage duplicates by turning off imports or archiving extra accounts. When you add a bank, Wave creates an account in your chart of accounts for you. If you need help, Wave Advisors can guide you through fixing duplicate connections or deleting transactions.

• Automatic transaction imports with Wave Pro
• Duplicate connection management tools
• Chart of accounts updates with each new bank connection
• Support from Wave Advisors for troubleshooting

Reporting Tools

Wave gives you the reporting tools you need to make smart decisions. You can run profit and loss statements, balance sheets, and cash flow reports. These reports help you see how your business is doing and spot trends. Wave automates bank reconciliation and expense tracking, so your reports stay accurate. You can export data to Google Sheets or Excel for deeper analysis. This flexibility helps you plan and grow your business.

• Profit and loss, balance sheet, and cash flow statements
• Automated reconciliation and expense tracking
• Export to Google Sheets or Excel for custom reports
• Supports strategic planning and financial management

Payroll Options

Wave offers payroll services for small businesses in the United States and Canada. Payroll by Wave lets you pay hourly or salaried employees, handle tax calculations, and use direct deposit. You can set up employee profiles, track time, and manage PTO policies for an extra fee. Payroll is free for up to 10 employees, then costs $6 per employee per month (plus transaction fees). You get 1-on-1 support by phone or email if you need help.

Note: Wave accounting features list covers all the basics you need for money management features, invoicing software, and online payments. If you want customizable invoices, easy expense tracking, and reliable payroll, Wave gives you a lot for free.

Wave Accounting Pricing

Free Plan Details

You might wonder what you get with the free plan option from wave. The free plan gives you access to the core accounting tools you need to run your business. You can send unlimited invoices, track income and expenses, and manage sales taxes. You also get basic reports to help you see how your business is doing. Many small business owners like that you can add unlimited customers, vendors, and products without paying extra.

Here’s a quick look at what’s included and what’s not:

You get a lot for free, but some features require an upgrade.

Paid Features

If you want more automation or need to accept online payments, you can look at the paid pricing plans. The Pro Plan costs $16 per month or $170 per year. This plan adds features like auto-importing bank transactions, unlimited digital receipt capture, and automated late payment reminders. You can also remove wave branding from your invoices and use live chat support. Payment processing fees drop for your first ten transactions each month. Payroll and bookkeeping services are available as add-ons.

Here’s a table to help you compare:

You can cancel your subscription at any time. Each business needs its own subscription.

Hidden Fees

Wave keeps its pricing simple. You do not pay cancellation penalties or monthly fees for payment processing. Instead, you pay a small fee when you accept payments. For credit card payments, the fee is 2.9% plus 0.60 per transaction](https://www.waveapps.com/payments). ACH payments cost 1%. If you use Instant Payout, you pay an extra 1% on the amount you withdraw. Payroll services cost [. ACH payments cost 1%. If you use Instant Payout, you pay an extra 1% on the amount you withdraw. Payroll services cost $40 per month plus $6 per active employee or contractor. There are no setup fees or hidden charges for payroll. You always know what you will pay.

Tip: Wave accounting pricing plans are transparent. You only pay for what you use, and there are no surprises.

Wave Accounting Pros and Cons

Usability and Interface

When you first log in to Wave, you notice how clean and simple everything looks. The dashboard gives you a clear view of your business finances. You can see your income, expenses, and cash flow right away. The sidebar menu lets you jump between Sales, Purchases, Banking, Accounting, Payroll, Reports, and Settings with just a click.

If you have never used accounting software before, you will find Wave easy to understand. The platform guides you through setting up your account, connecting your bank, and creating your first invoice. You do not need to know accounting terms or have a background in bookkeeping. Wave designs its interface for business owners who want to get started quickly.

Here are some things you will like about the usability:

1. You get essential tools that are easy to find and use.
2. The interface is made for people without deep accounting knowledge.
3. Cloud-based access means you can check your books from anywhere.
4. US-specific features like payroll and tax filing help you stay compliant with less effort.

You can set up your account in minutes and start tracking your money right away. Many first-time users say the onboarding process is smooth and the learning curve is gentle. Even if you have never used accounting software, you will feel comfortable with Wave.

Customer Support

Customer support is important when you use any accounting software. With Wave, you have a few ways to get help. If you use the free plan, you can search the Help Center or use the chatbot called Mave. These resources answer most common questions and guide you through basic tasks.

If you pay for the Pro Plan, you get more options. You can reach out to the support team by email or live chat from Monday to Friday, 9 a.m. to 5 p.m. EST. The team usually responds quickly and helps you solve most problems. Many users say the support staff is friendly and knows the product well.

Here is what you can expect from Wave Accounting support:

• Email and live chat support for paying customers.
• Self-service support and chatbot for free users.
• No phone support for any users.
• Support hours are limited to weekdays during business hours.
• The team handles most issues well, but some complex problems may take longer to fix.

You might find the lack of phone support frustrating if you want to talk to someone directly. Free users also have fewer support options. Still, the customer service team tries to help you as much as possible within these limits.

Tip: If you need fast answers, check the Help Center first. Many common issues have step-by-step guides.

Security and Reliability

You want your business data to stay safe. Wave uses strong security measures to protect your information. When you send data, Wave encrypts it with 256-bit TLS, which is the same level banks use. Your accounting data sits on servers with tight physical controls and round-the-clock monitoring.

Wave does not store your credit card details. Instead, it uses tokenization to process payments securely. Bank connections are read-only and managed by trusted third-party services. Wave meets PCI Level 1 standards, which are the highest for payment card security. The company also uses fraud prevention tools and has a layered defense system.

Wave limits access to your personal data. Only authorized employees, contractors, or third parties with a business need can see it, and they must keep it confidential. If there is ever a suspected data breach, Wave has steps in place to respond and notify you if needed.

When it comes to reliability, Wave works hard to keep the platform running. The engineering team chose tools that help keep downtime low. This means you can count on Wave to be available when you need it. However, as with most cloud accounting software, you should back up your own business data. While Wave backs up its environment, it may not restore individual customer files. Regular backups help you avoid problems if something goes wrong.

Limitations

Every accounting software has its limits, and Wave is no different. You get a lot for free, but you may run into some roadblocks as your business grows or your needs change. Here is a table that shows the most common limitations users mention:

You may also notice that Wave does not offer inventory management, time tracking, or advanced reporting. If you need these features, you might outgrow Wave as your business expands. Some users wish for more integrations with other business tools. The platform focuses on simplicity, so it leaves out many advanced options found in other accounting software.

Note: Before you choose Wave, think about your business needs now and in the future. If you want more customization or advanced features, you may want to look at other options.

User Experience with Wave

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Positive Feedback

When you look at user reviews for Wave, you see many small business owners feel happy with their choice. People often say the software saves them time and makes bookkeeping less stressful. You can start sending an invoice right away, which helps you look professional from day one. Many users like that they can manage their accounting on both mobile and desktop, so they never feel tied to one device.

Here are some things users love about Wave:

• You save time on bookkeeping because the software auto-imports and categorizes your bank transactions.
• You can send unlimited invoices and keep all your records in one place, which supports your business as it grows.
• The invoicing and online payments tools help you get paid faster.
• You can use features like estimates, receipts, payroll, and expert advisors, all in one platform.
• The free Starter Plan and flexible subscriptions make it easy for you to start, no matter your business size.
• Live chat and email support give you confidence when you need help.

Many user reviews mention that Wave gives you a complete set of tools without charging high fees.

Common Complaints

Even though Wave gets a lot of praise, some user reviews point out areas where the software could improve. You might notice a few common issues if you read through wave accounting complaints.

• Some users wish for more advanced features, like inventory tracking or project management.
• People sometimes find the mobile app has fewer features than the desktop version.
• You may feel limited by the number of integrations with other business tools.
• Customer support is only available by email or chat, which can be slow during busy times.
• A few users report occasional glitches or delays with bank connections.

If your business needs more complex accounting or you want faster support, you might feel frustrated. Still, most user reviews agree that Wave offers great value, especially for small businesses that want simple tools for invoicing and online payments.

Wave vs Alternatives

Wave vs QuickBooks Online

When you compare wave to QuickBooks Online, you notice some big differences. Wave gives you the basics for free, which is great if you want to save money. You can send invoices, track expenses, and connect your bank account. QuickBooks Online, on the other hand, offers more advanced tools. You get features like inventory tracking, project management, and detailed reports. These extras help if your business is growing or has more complex needs.

Here’s a quick table to help you see how they stack up:

Wave works best for freelancers and small businesses that want simple tools and low costs. QuickBooks Online fits businesses that need more features and plan to grow.

Wave vs Xero

Now, let’s look at wave and Xero. Both offer cloud accounting, but they serve different needs. Wave keeps things simple and free for basic use. You get invoicing, expense tracking, and some reports. Xero gives you more advanced options, like inventory management, project tracking, and time tracking. If you want to manage bills, track projects, or handle inventory, Xero has you covered.

Check out this comparison:

If you want a simple, free solution, wave is a good pick. If your business needs more features or plans to grow, Xero might be better. Xero’s paid plans start at $20 per month, while wave stays free for most basic needs.

Tip: Think about what your business needs now and in the future. If you want to keep things simple and low-cost, wave is a strong choice. If you expect to need more advanced features, QuickBooks Online or Xero could be worth the extra cost.

Wave works best for freelancers and small businesses that want simple, free bookkeeping. If you need more advanced tools, you might look at other options. Here’s a quick table to help you compare:

Try the free plan from wave if you want to keep things simple. If you feel unsure, compare wave with other software before you decide.

FAQ

Is Wave Accounting really free to use?

Yes, you can use Wave’s core accounting features for free. You pay only if you add payroll, payment processing, or bookkeeping services. There are no hidden monthly fees for the basic plan.

Can you use Wave Accounting outside the United States or Canada?

No, Wave only supports businesses in the United States and Canada. You cannot use it for companies based in other countries, including China or Hong Kong.

Does Wave Accounting work for product-based businesses?

Wave works best for service-based businesses. If you sell products and need inventory tracking, you may find Wave too limited. You cannot manage inventory or track stock levels in Wave.

What payment methods does Wave accept for invoices?

You can accept credit card and ACH payments through Wave. Here’s a quick look:

Note: Payment processing fees apply. Check the latest rates in USD before you start.

Wave is a smart choice if you just need free, simple bookkeeping — but as your business grows, you may outgrow its limits. If you work with overseas clients or suppliers, you’ll need more than basic accounting. That’s where BiyaPay helps.

With real-time FX rate checks, conversion fees as low as 0.5%, and same-day settlement to most countries, BiyaPay gives you the global payments power Wave doesn’t. You can manage multi-currency transactions, streamline cross-border payments, and keep your cash flow running smoothly.

Take your business finances beyond bookkeeping — sign up for BiyaPay today and unlock faster, smarter international payments.